Niantic, the game developer behind the successful augmented reality games Pokémon GO and Ingress, is now worth over $4 billion. The latest valuation comes after a recent round of funding, where Niantic has raised $200 million at a higher valuation that has driven the total market capitalization of the company over the mark. The game developer is considered among the most successful in recent times, and continues to be driven by revenues from its flagship product, Pokémon GO.
Naturally, the success of the game has a lot to do with the global popularity of the Pokémon franchise, but it’s largely because of the dynamics of using Augmented Reality as well. The game makes players go outside and use maps and their smartphone’s camera to detect and ‘capture’ virtual Pokémons. Although the popularity of the game has reduced recently, it continues to have an active user base and generate millions of dollars in revenue.
The American game developer initially started out as an Augmented Reality project within Google, but has since spun off as an independent company. Niantic has received funding and is viewed as a high-potential developer, primarily for its focus on augmented reality gaming. The smartphone gaming space in general has been a lucrative one for the past few years, and developers continue to grow and generate huge revenues.
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Also vastly successful in the mobile gaming space are developers Tencent Games and Epic Games, responsible for PUBG Mobile and Fortnite respectively. However, the big valuations are still controlled by large game developers such as Electronic Arts, Activision Blizzard and Rockstar Games.